Breathe new life into your business programs. Help customers navigate the right energy investments by selling your products and services as solutions to their business – not just their bill.

In this emerging market of energy solutions, our clients want to be seen as a “trusted advisor” to customers. In order to do this, energy services companies need to stop talking energy and start talking benefits.

An executive at a national retailer says it perfectly:

“Energy efficiency affects us in a very profound way – reliability, stability and comfort.”

WATCHother key highlights from a series of qualitative interviews with business owners and executives where we discuss the meaning of energy costs, savings and benefits.

According to an Ecova report*, 57% of executives, finance and sustainability professionals expect an increase in the time and money spent on energy and sustainability management this year.* Consumers are expecting more action from companies and companies are demonstrating an increased willingness to invest.

How do we, as marketers for energy services companies, reach this audience and leverage this important expectation?

A successful value proposition for this audience should align with their needs, values and priorities. Too often we say, “Lower your energy costs!” This is not standard conversation, unless perhaps, you’re the facility or operations manager… and these aren’t your decision makers. How do we help these people sell up the management chain?

In our interviews, one CEO stated, “You have to educate someone about the inefficient areas so they pay attention to it. We just assume some costs are constant, outside our realm of control.”

While there is an increased interest in more efficient operations and sustainable infrastructures, the decision to invest still needs to make financial sense. (And in most cases, that means more than just reducing future energy costs.) To capture the attention of C-suite executives and top managers, your message needs to present solutions to their overall business objectives.

Assure these customers that energy efficiency is not about using less or producing less. No one wants to shrink industry. The goal is to operate efficiently, and simply to invest less in waste.

From their perspective, here are some elements of what success looks like:

Reduced O&M costs

Reduced risk

Increased asset value

Increased equipment reliability

Increased employee engagement, productivity and safety

Increased new business opportunities

While customers may not think they have an “energy” problem, what company doesn’t want to reduce O&M? Especially if by doing so, they’re also able to increase their employee engagement, productivity and safety?

At KSV, we help our clients create value propositions that speak directly to the objectives of their customers. For this audience, whether small business, commercial or even the trade allies, understanding their perspective on the benefits of energy efficiency, and better business, will get you in the door a whole lot faster.

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KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

KSV's 2015 consumer research has also been featured on: Utility Dive, Fortnightly, Energy Central, Intelligent Utility and Energy Efficiency Markets.

WATCH highlights from a series of qualitative interviews with business owners and executives where we discuss the meaning of energy costs and energy savings.

To them, the savings mean:

Reduced O&M

Better technology

Less waste

Increased productivity

Offset to clients cutting back

Higher investment in people

An executive said, “It all comes down to the dollars and cents.” But it really comes down to those dollars and cents bettering the business as a whole. It’s about engaging your customers to understand their energy costs and usage enough to understand its potential impact.

Another executive at a national insurance provider said, “The ultimate value would be customized information that highlights the specific benefits for our companies’ portfolio. I want to see metrics and relevant case studies. Show me where it has worked in similar buildings - then we’ll have a conversation.”

How are you talking to business customers?

When it comes to the savings, are you showing them the value in that $0.17? Are you speaking to the greater business impacts that those savings allow? (More on these benefits next week.)

We believe that saving energy can be the difference in doing business and doing better business. Which would you choose?

At KSV, we help our clients create value propositions that speak directly to the objectives of their customers. For this audience, whether small business, commercial or even the trade allies, understanding their perspective on the benefits of energy efficiency, and better business, will get you in the door a whole lot faster.

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KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

KSV's 2015 consumer research has also been featured on: Utility Dive, Fortnightly, Energy Central, Intelligent Utility and Energy Efficiency Markets.

Last week we talked to customers about “energy efficiency” vs. “home improvement.” (WATCH what they had to say.) While 60% of homeowners enjoy taking on DIY home improvement projects, they’re overwhelmed when asked about energy efficiency.

It’s complicated.

It involves too much research.

I don’t really need energy efficiency. I need machines that work.

It’s not about energy efficiency. It’s about improving my home.

The truth of the matter? We know energy efficiency and home improvement are one in the same.

The problem? That’s not the customer perception.

How do we change the dialogue and understanding? How do tap into this ‘home improvement’ category that customers are already interested in?

This week, we talked to customers about home improvement challenges. Where can energy services companies bring value? What are your customers already struggling with, and wanting a solution? An advisor?

Customers fear even the “small, quick” projects because they never seem to be small or quick.

Customers are hesitant to trust contractors and their quotes. They don’t have confidence in knowing who to trust for quality and price.

Customers want a more systematic approach to home improvement, but don’t know what needs regular maintenance or “check ups.”

Customers want to be advised. They want help.

Where do energy services companies fit in here? Across the industry, we’re listening to companies talk about the evolution to becoming a “trusted advisor” to customers. But according to KSV’s 2015 market research*, the reality is only 1% of customers would go to their utility first for home-related issues.

Step one? Advise them when and where they want the help and encouragement. Understand their challenges and make them your opportunities.

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

KSV's 2015 consumer research has also been featured on: Utility Dive, Fortnightly, Energy Central, Intelligent Utility and Energy Efficiency Markets.

“We need to stop interrupting what people are interested in... be what people are interested in.” – Craig Davis

Have you ever looked up the definition for “energy efficiency”? Well if you do, you’ll find no definition on Dictionary.com. At least Wikipedia offers “energy efficiency may refer to efficient energy use, energy conversion efficiency, energy conservation.” (Though, we know these things to be different.)

The point? Energy efficiency is an industry term. It’s not mainstream.

The questions customers have are pretty simple. They want simple answers with simple solutions. We heard again and again:

"It's too overwhelming. I don't even know where to begin."

“It’s not about energy efficiency. It’s about improving my home.”

So, how do we re-position energy efficiency to not feel like an extra category on the to-do list? How do we embed it into what people are already doing when it comes to home repairs/upkeep?

We change the dialogue. We make the benefits of your programs or products relatable to the lives of your customers.

According to Simmons, customers are interested in home improvement. On average, there are the same amount of Google searches for “home improvement” as for “apparel” every month. On top of that, Nielsen reports that HGTV is in the top 10 channels watched during Primetime.

Our research tells us that 60% of Americans actually enjoy taking on home improvement/D-I-Y projects. So, why did only 18% of Americans participate in E.E. utility programs last year? And why did over half report making no E.E. improvements in the last 12 months?

We need to connect the two and make it clear that energy efficiency improvements are home improvements. Maybe we should even consider nixing the term “energy efficiency” altogether and replacing it with “home efficiency” or “home improvement.”

Talk to customers about what they’re already interested in – what they see value in.

Utilities might take a cue from Lowe’s Home Improvement, which has done an incredible job making home improvement fun. For proof, just check out Lowe’s very entertaining and instructive home improvement videos #lowesfixinsix on Vine.

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

KSV's consumer research has also been featured on Utility Dive, Fortnightly, Energy Central, Intelligent Utility and Energy Efficiency Markets.

KSV’s 2015 market research presents an interesting opportunity to energy services companies: 60% of homeowners (between the ages of 25-34) believe their energy provider could do more to encourage energy efficiency.* These customers, these Millennials, actually want to hear more from you. (Shocked?)

The median age of first time homebuyers is 31. This falls well below the propensity models and targets that most energy services companies use, missing a big opportunity to reach an audience that is actually wanting and willing to listen.

New homes and first homes are a big opportunity to start encouraging energy efficiency. First time homebuyers have never renovated a home, never prioritized home projects, and are more open to help. Many are left confused on where to begin, prioritizing aesthetic upgrades over potentially more sound, and certainly more ROI driving E.E. upgrades.

On top of that, this generation brings a whole new customer to the industry. One that is increasingly aware of their choices and opportunities when it comes to their energy use. It’s up to you as companies and us, as marketers, to make them comfortable, confident and engaged in what you can or do provide them.

Losing the one-size-fits-all approach is a must. This group wants to hear from you, and believes you can do more to encourage energy efficiency… but if you’re not talking to them through personalized and relevant communications, they’re gone. They will not seek you out. They know in today’s digital world, they shouldn’t have to. If you want their attention, you’re going to have to court them.

· Socially conscious: Prioritizing social causes that align with theirs, including the environment.

· Distrusting big companies.

· Favorable to government regulation.

How can you prove them wrong? How can you surprise them? This is where you’ll find success.

Put your services into a context that they actually value.

KSV’s research shows that this younger generation values smart technology and the control it provides them.

J.D. Power’s “Consumer Engagement” study (which provides great insight on how this industry can better market to these customers) supports this idea of control:

“Gen Y [Millennials] is inclined to take control of their energy usage, with more using programs such as online energy calculators and social media tools that allow them to be hands-on, compared with Pre-Boomers and Boomers, who tend to favor rebates and programs that allow them to be more hands-off.”

What kind of messages are you sending these customers? We know they care about the solution, but they may not care about your offer, which in turn… means they won’t click, call, or act.

Deliver the right tools and technology that allow them to run their homes the way they want to.

The same J.D. Power study referenced above states, “Social media tools for comparing energy usage offer the highest boost in overall customer satisfaction, BUT [and it’s a big one] only 5 percent of customers are even aware of these tools and less than one percent of customers have actually used them.”

In KSV’s research, we heard that only 1% would go to their utility for a home-related issue. Looking at the above, it’s because 95% of them don’t know you have the solutions. The answers.

Offering the tools is simply step one. Delivering them to the right customers in the right context is the ever-important step two.

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

*KSV National Consumer Research on Homeowners and Energy Efficiency, 2015.

As marketers, we’re constantly challenging ourselves to think differently (and more humanly) about energy and efficient products. How can we approach participation from a truly customer-centric perspective? How do we start a movement that inspires action across audiences? How do we get people to care about living an efficient life?

In 2014, 69% of research* participants stated they found themselves adapting to inefficiencies in their homes rather than seeking solutions.

People are so normalized to everyday inefficiencies in their homes, it is only when these inefficiencies cause a disruption in expectation that they are noticed.

This is a huge barrier: increasing participation/sales in programs and products that customers aren’t aware they even need. How do we disrupt the customer expectation of what is “normal”?

Earlier this year, we surveyed more than 1,350 homeowners across the country to give us an even deeper understanding of the customer attitudes, perceptions and outlook for energy and efficient products.

We found some surprising results.

1. People have a strong and positive outlook for energy efficiency. In fact, 75% expect significant impact from energy efficient products and services in as little as five years (for their home, the U.S. economy and the world).

2. Customers again and again said, "It's not about energy efficiency. It's about improving my home."

'Energy efficiency' lags action, intent and motivation. It’s complex, remote (in time and consequence) and intangible. To bridge the gap between awareness and action, we need to re-frame the energy efficiency message around the customer and their priorities.

We can’t ask people to do things and expect them to care. We have to position and communicate the benefits of our products and programs as such a good fit for them that they actually want the solutions you’re offering. Until they want it, they’re not going to invest time and resources into it.

Becoming a trusted advisor. This is the ambitious goal we hear again and again from our energy services clients and partners. It’s a hard one, and in some cases, means transitioning from being a commodity to customers to holding a relationship with customers.

In order to reach any goal, we need to really understand the customer perceptions and behaviors. We need to invest in learning where you stand, in order to know how far you have to go.

In KSV’s 2015 market research*, we asked customers about who or where they turn to for home-related issues, the results gave us an interesting perspective on how far the industry has to go:

33% stated a family or friend

27% stated online research

26% stated home improvement store/retailer

8% stated a contractor

1% stated their utility

99% of customers are looking to start somewhere else. (Yikes.)

When thinking about this, it’s crucial to pull ourselves out of the day-to-day programs and regulator demands. In order to build a relationship and trust with customers, we need to think like one. We need to hold their drivers and their perceptions top-of-mind to determine when and where we can deliver the highest impact on this road to a relationship.

Start with a high-level look at your communications. What’s your message? What are you talking to customers about? Is the conversation segmented across programs? Or do they all ladder up to one, core message people remember and connect with?

Because energy efficiency provides incredible customer engagement opportunities for utilities, it’s important to make sure we’re successful in leveraging that conversation. And the truth is… most of the time it’s not.

Energy efficiency is the utility’s opportunity to cost effectively meet savings goals, show their own sustainable efforts and offerings, while proving the benefits they provide customers… go beyond powering the plug. It’s your opportunity to engage, educate and advise people on how to improve the health, comfort and stability of their homes and businesses. It’s the opportunity to show who the real advisor is and will be as the energy revolution continues to grow and evolve.

In order to do this right, the message has to be balanced between both the emotional benefits people connect with and the financial benefits serving as rational proof for customer’s to act.

Step 1: Get the attention of your customers through the emotional, personal benefits of energy efficiency. Focus on the things that they actually care about: health, control, comfort, reliability, peace of mind.

Step 2: Support with rational arguments like financial incentives and manageable costs. Guarantee some aspect of these benefits and savings, so customers know they can trust you.

JetBlue is one of our favorite examples of a company changing the consumer demands of an entire industry. Trust? Satisfaction? JetBlue has now ranked highest in their division for the 10th consecutive year. And this is their 11th consecutive year of holding the highest overall ranking in the study.

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

*KSV National Consumer Research on Homeowners and Energy Efficiency, 2015.

An advertising agency that monitors the annual release of utility J.D. Power scores? It may sound odd (though we say, ‘terrific’), but this helps us to push our energy clients forward by the same standards in which they’re judged (err… measured).

On Wednesday, the infamous J.D. Power scores and key findings were released to the public. Local media is lighting up communities with conversation around how their utility is measuring up. And in many situations, the result is creating further dissatisfaction.

So what do we take away from this? How can you cut through the overwhelming amount of meetings and conversations you may or may not be having, and get to real actionable (and affordable) ways to start increasing that score for 2016?

Looking back at the scoring matrix (which most of you probably have memorized), we know the factors are not weighted equally. And some might say, “Well, I can only impact 4 and 5, or 2 and 6.”

But there’s one factor that actually permeates the entire matrix. While it’s only weighted at 13%, successful, proactive communications can elevate scores across the full matrix.

1. Power Quality and Reliability

2. Billing and Payment

3. Price

4. Corporate Citizenship

5. Communications

6. Customer Service

J.D. Power brings up the importance of “proactive communications” several times throughout the report. And this is the ticket. This is what customers want.

A lot of the time in this industry, people hear “proactive communications” and assume you’re talking about storm outage control. But in this case, we’re referencing proactive communications being the epicenter of your entire marketing plan - across every program, campaign and touch point.

We cannot expect customers to come to you – in fact, our national market research* shows that only 1% of participants state they would go to their utility for a home-related issue. So, we can’t expect customers to come you, because quite frankly, they aren’t going to.

We need to find customers when and where they need help and advising. We need our communications and marketing efforts to be set up in a way that respond with relevant, sequential messaging that directs customers to where they need to go. An integrated approach that pushes customers to 1.) know your broader service offerings 2.) gets them to participate and 3.) gains their trust in you as an energy advisor.

KSV’s approach to proactive utility marketing and communications is rooted in creating messaging that is relevant and personalized to customers - delivered in the right context, with the right content and through the right and preferred channel. (Feeling like this is impossible? Talk to us. We’ll walk you through it.)

By doing this, we make sure you get noticed. In J.D. Power language, we work to make sure you at least get “recalled.” (It’s reported that customers who at least recall communications about any of the six factors score significantly higher on satisfaction.)

In the most general of terms, it’s about telling a bold story. And telling it to the right audience. Understanding who is most likely to participate, understanding who actually has the need to participate, and also understanding who is most likely to take the J.D. Power survey. Reaching these customers with relevant and proactive messaging is the action to be sought.

There’s so much to talk about here. We’ll be covering this topic in a three-part series, and will include insights and findings from recent market research on the American homeowner and their relationship with energy efficiency. (Some of which has been featured on Utility Dive, Energy Efficiency Markets, Fortnightly and Energy Central.)

As marketers, we’re constantly challenging ourselves to think differently (and more humanly) about energy efficiency – to remove ourselves from the daily grind of heating and cooling programs, product rebates and financing offers. How can we approach participation from a truly customer-centric perspective? How do we start a movement that inspires action across audiences? How do we get people to care about living an efficient life?

At KSV, our team is constantly hitting the road to learn what makes your customers tick. We talk to homeowners, small business owners and even large C & I decision makers about the barriers, motivators and overall benefits of energy efficiency.

The result? Unexpected insight into the consumer relationship with energy efficiency; insights that tell us we, as an industry, need to make some core changes.

The good news? There’s a solution. We can get people to act, but we have to re-frame the energy efficiency message as we know it. We need to ground the message in the very things your customer already values. (See: Energy Efficiency vs. Home Improvement)

In 2014, 69% of research* participants stated they found themselves adapting to inefficiencies in their homes and/or businesses rather than seeking solutions. We heard:

“You come into the house and you put a sweater on, and you just kind of leave it at that.” – Homeowner

“You have to educate someone about the inefficient areas so they pay attention to it. They just assume some costs are constant and part of their daily lives. People just get used to it. They think it’s outside of their realm of control.” - CEO, Global Software Company

People are so normalized to everyday inefficiencies in their homes and/or workplace that it is only when these inefficiencies cause a disruption in expectation that they are noticed.

This is a huge barrier: increasing participation/sales in programs and products that customers aren’t aware they even need. If their bills are consistent, that means they’re efficient… Right? How do we disrupt the customer expectation of what is “normal”?

Earlier this year, we surveyed 1,350 homeowners across the country to give us an even deeper understanding of the customer attitudes, perceptions and outlook for energy efficiency.

People have a strong and positive outlook for energy efficiency. In fact, 75% expect significant impact from energy efficient products and services in as little as five years (for their home, the U.S. economy and the world). But only 18% reported participating in a utility E.E. program last year. And 64% of homeowners reported NOT making any E.E. improvements last year.

This disconnect tells us a lot, especially: we're still talking about energy efficiency all wrong.

Customers again and again said, "It's not about energy efficiency. It's about improving my home."

'Energy efficiency' lags action, intent and motivation. It’s complex, remote (in time and consequence) and intangible. To bridge the gap between awareness and action, we need to re-frame the energy efficiency message around the customer and their priorities. (And their priorities are different than yours. (See: Utilities want to be customer-centric, but what’s centric to your customer?)

We can’t ask people to do things and expect them to care. We have to position and communicate the benefits of our products and programs as such a good fit for them that they actually want the solutions you’re offering. Until they want it, they’re not going to invest time and resources into it.

If we can build desire for energy efficiency, we’ll give it intent and we’ll disrupt the notion of “just putting a sweater on.” Successful energy efficiency programs provide the opportunities for increased customer engagement, satisfaction and the ability to be seen as a resource. All of these ladder up to being a true “trusted energy advisor.”

Next week, we’ll look at trusted advisors in other industries and how they communicate through the priorities of their customer. Let’s see what we can take away.

New market research tells us one thing loud and clear: It’s not that customers don’t care about energy efficiency. It’s that energy efficiency isn’t even on their radar. (So when it comes to the ever growing to do list… these upgrades don’t make the cut.)

We recently surveyed 1,345 homeowners across the country to better understand the customer relationship (or lack thereof) with energy efficiency. And get this:

86% state the world will benefit from increased E.E. technology.

75% state E.E. will have a substantial effect on the American economy.

… And all within the next 5-10 years.

So, why did over half of participants not make any E.E. upgrades in the last 12 months? And only 18% said to have participated in a utility E.E. program.

Where’s the disconnect between the customer outlook and customer action?

How do we get on the to do list?

It’s a tremendous exercise to conduct an industry audit on E.E. and/or utility marketing and communications. You’ll see that a lot of time and energy is put into selling E.E. solutions. (Sign up for a home energy audit! Save energy and money! Rebate for LED bulbs!)

But, how can we ask customers to fix something they don’t know is broken? When do you act on a solution before you understand the problem?

Step 1: Get on their radar.

Customers have become normalized to everyday inefficiencies in their homes and workplaces. If their bills are consistent, they think they’re efficient… Right?

They tune out E.E solutions because “those programs are not relevant to me.”

Our 2014 market research showed 69% of participants stated they adapt to inefficiencies in their homes and/or businesses rather than seeking solutions.

In 2015, our market research showed that not much has changed. Customers said again and again, “The only time I think about energy efficiency is when someone mentions energy efficiency.”

We also heard, “It’s not about energy efficiency. It’s about improving my home.”

So how do we get on the customer radar with a topic that is so far from the list?

We have to make it matter within the context of their lives. How do your solutions enhance the daily lives of the people you’re talking to? Do these solutions improve the quality, health and value of the home? Do they increase the overall home comfort? Do they deliver control and consistency in both the home and the bills?

Trigger a deeper, more emotional response. Simplify the complexities of this industry into marketing that speaks directly to the motivations of your customer, and we’ll get them inspired. We’ll get them to care.

On top of that, 75% of homeowners expect big impact from energy efficient products and services in as little as five years. (FIVE years!)

YET, only 46% invested in an energy efficiency measure last year, and only 18% participated in a utility-sponsored energy efficiency program.*

Where’s the disconnect? If people “believe”, why won’t they act?

Research supports that while most customers are “aware” of utility programs and product efficiencies, they’re unaware of the personal benefits driving their actual desire to commit. In order to bridge “awareness” and “action,” energy efficiency solutions need to become relatable to the things customers prioritize most: health, home, family, entertainment, and self.*

In other words, we need them to “want it” before we can expect them to act on it.

As interest and awareness increase, it is an especially critical time for utilities to prove their value to customers. Energy efficiency provides the opportunity to build a brand for the future, and to move from a “traditional billing processor” into a “trusted energy advisor.”

Utilities can capture the health, home and family categories relatively easily, but framing them from a traditional energy efficiency standpoint doesn’t create desire. Successful energy efficiency marketing will re-frame energy efficiency by focusing on what truly matters to customers, what they will relate to, and what will get them to act.

A terrific example of a big brand doing this is JetBlue. They’re a “how-to guide” for building a truly customer-centric brand and long-term loyalty. Like energy efficiency, the benefits of flying are in the result – a vacation, spending time with relatives or coming home.

But this airline reinvented the industry when they offered customers the personal benefits they wanted, but didn’t know they could have. If and when fares increase, customers will still fly JetBlue. They want the better experience. They want to support a company who celebrates and prioritizes sustainability, military veterans and people. (Just Tuesday, JetBlue learned of a high school cheerleading team who was going to be stuck in an airport for three days. They sent a van, transferred the team to another airport and got them home that night. True story.)

While JetBlue is known for high quality service at an affordable price, it’s the experience that customers have built a connection with. They provide and sell the benefits that really matter to customers when they travel. (And no surprise, that’s more than just the upfront savings.)

When walking down a JetBlue terminal, passengers are flooded with exciting amenities:

More legroom!

Brand name snacks!

Recycling!

Your own TV! (36 channels!)

No black out dates!

Points that never expire!

Travel with your pets!

And soon to be… Free WIFI + power outlets on every row!

We’re not surprised that JetBlue has won their 10th consecutive, customer satisfaction award with J.D. Power.

When it comes to energy efficiency, why aren’t we talking to customers about the personal benefits they’ll actually connect with? Financial savings is important, but the long-term connection will come from the benefits that impact what people prioritize most: health, home, family, entertainment, and self.

The results of improving your home through energy efficiency are much bigger than financial savings; it’s a more comfortable home at a controlled cost. It’s a more reliable home at a higher value. It’s a safer, healthier home for your family. It’s taking care of your most important asset: home.

The financial savings make it easy for people to commit, but don’t move the needle in getting people to care.

For an industry that’s largely never had to be a brand, transitioning ratepayers into loyal customers is a challenge. But it’s also a chance.

If you’re interested in hearing the full research report, and the customer insights on making energy efficiency matter, get in touch with Lauren Bell.

In KSV’s newest national survey, 78% of Hispanic homeowners are interested in making their homes use less energy. (That is 10% higher than the interest level of African Americans, and almost 20% higher than that of Caucasians.)*

On top of that, 67% of Hispanic homeowners stated they made E.E. improvements to their home over the last 12 months. (That is a 20% higher action rate than African Americans and almost 25% higher than Caucasians.)*

So, not only is the Hispanic customer interested in their energy consumption, but they’re taking action more than any other ethnic group.

But are they forgotten? Is this audience prioritized and appropriately targeted? Are they offered Spanish translations of your E.E. programs (not just bill pay!) and product offers? Are they targeted with messaging and marketing that resonates with them? And their commitment to living smarter and more responsibly?

Generally, this customer base reports that energy and environment impact their quality of life a lot. They are increasingly willing to take action to conserve energy (through new products and appliances to clean energy sources) because they draw a clear connection between energy and environment to family health. They believe their actions have impact, and it’s their moral responsibility to care for the earth.

Prioritize this audience in your marketing. Engage with them and their communities. They’re already interested, so we need to be too.

85% of homeowners want visual information, an in-depth dashboard of their energy consumption. 52% state that they would change their behavior from the ability to better understand and visualize the way they are powering their homes.

And for utilities, it was especially interesting to hear that 71% of homeowners state they would actually adjust their consumption during peak load times.*

Why does visualization engage customers on a different level? It provides education without you having to be the professor.

While customers don’t want to be educated on energy efficiency or how to run their homes, they’re still lacking a general understanding of how their homes are powered. (For example, over 60% of homeowners cannot explain what a kWh is. Yet – the industry is trying to sell products and programs that reduce just that. Something customers can’t even quantify.)

Think about other industries that have found success with this model of quantified self and visualization: Finance, Healthcare and Fitness.

Could people balance their checkbooks before mobile banking? Yes.

Could they hold a balanced diet before diet/meal tracking? Yes.

Could they go for a run or choose to take the stairs before wearing the FitBit? Of course.

So why is this visual, monitoring technology so necessary if we could do all of these things before?

The ability to set goals and know where you stand in meeting them.

The ability to engage with your own network around your progress and theirs.

The ability to share your successes.

The ability to see the benefit of even the smallest of steps.

Perhaps the most important though… Instant gratification of making the hard choice, and the motivation to do it again.

Well, you can call consumers “lazy” but we prefer “evolved.” In order to meet your sales or participation goals, you measure your progress. How can we expect consumers to take action without the same benefit? Especially when it comes to energy consumption, something so remote in time and consequence?

Visualization helps answer the question, “Is it really worth it? Is this making an impact?” - If I take the stairs… Is that really going to help burn off the donut hole I ate this morning’? Is powering down my computer worth the 60 seconds it takes to power it back up? Will that LED bulb really make a difference? (It better for $20…)

There are still challenges though: You cannot invest in technology and simply expect customers to swoon. How do we get people to want and trust the technology you may or may not already provide?

We must provide relevant, value-based communications that will create desire to use such technology. We must make the purpose and motivation relatable to the lives of the customer – we need to empower them to make the harder and smarter choices in order for them to want the solution.

Here’s an exercise: Look at FitBit’s brand manifesto. Read it and think about this through the lens of energy and powering homes vs. fitness. Scroll down and continue to see how the market leader in fitness tracking sells its product.

What can we apply to making energy matter?

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

“We need to stop interrupting what people are interested in... be what people are interested in.” – Craig Davis

Have you ever looked up the definition for “energy efficiency”? Well if you do, you’ll find no definition on Dictionary.com. At least Wikipedia offers “energy efficiency may refer to efficient energy use, energy conversion efficiency, energy conservation.” (Though, we know these things to be different.)

The point? Energy efficiency is an industry term. It’s not mainstream. In general conversation, when do customers really talk about energy efficiency? Scenarios include:

Looking to buy or rent a house. They say, “What does the current resident pay in utility bills?”

Looking to purchase new appliances or products for the home. They say, “Is it ENERGY STAR certified? Is it efficient? Tell me more about the features. Ooooh. Shorter dry time?!

As an advertising agency specializing in energy efficiency marketing and communications, we constantly conduct customer research on the topic. In a recent survey focused on homeowners, we heard:

“It’s not about energy efficiency. It’s about improving my home.”

Change your dialogue. Make the benefits of your programs or products relatable to the lives of your customers. What are they already interested in? Find it and tap into it.

According to Simmons, customers are interested in home improvement. On average, there are the same amount of Google searches for “home improvement” as for “apparel.” On top of that, Nielsen reports that HGTV is in the top 10 channels watched during Primetime.

Our research tells us that 60% of Americans actually enjoy taking on home improvement/D-I-Y projects. So, why did only 18% of Americans participate in E.E. utility programs last year? And why did over half report making no E.E. improvements in the last 12 months?

We need to connect the two and make it clear that energy efficiency improvements are home improvements. Maybe we should even consider nixing the term “energy efficiency” altogether and replacing it with “home efficiency” or “home improvement.” Talk to customers about what they’re already interested in – what they see value in.

Utilities might take a cue from Lowe’s Home Improvement, which has done an incredible job making home improvement fun. For proof, just check out Lowe’s very entertaining and instructive home improvement videos #lowesfixinsix on Vine.

KSV has more than a decade's experience communicating about energy efficiency programs and products. Maybe we can help you. Get in touch with Lauren Bell to talk about your current challenges and opportunities, and we'll work on some solutions.

KSV's consumer research has also been featured on Utility Dive, Fortnightly, Energy Central, Intelligent Utility and Energy Efficiency Markets.

Control: Consumers are demanding more control over their homes than ever before. They want lighting that's flexible enough to be tailored to their individual needs and moods, and offers more functionality than on/off.

Home Intelligence: Consumers adopting connected technology need to know that it will all work together – whether it’s their lighting, thermostat, music, TV, or security system. They want to be able to manage these aspects of their home efficiently.

A couple of weeks ago, I heard a Boston architect talk about these top trends in the future of lighting. And throughout his presentation, I kept thinking… “Are consumers ready for this revolution?”

Last year, KSV conducted qualitative interviews with consumers regarding the shopping experience for lighting. Over and over again, we heard:

“It’s so overwhelming. I don’t know where to begin.”

It’s a complex situation. On the one hand, customers want a more connected home and lifestyle. According to Accenture, more than two-thirds of them plan to buy connected technology for their homes by 2019.

On the other hand, the shopping experience is so overwhelming that interested customers aren't taking action. In many cases, there’s a disconnect between the customer’s idea and their experience.

The problem is that while technology evolves to meet the customer demands, it's also getting more complex. How do we break through what is already seen as an overwhelming experience?

It starts with a personalized message. (You may be thinking, this is the answer to everything. And you’re right.) In this instance, I’m talking about selling the right product benefits to the right customer.

In our newest E.E. consumer research on homeowners, we saw a stark difference in the values of smart technology.

For example, younger consumers (under the age of 45) value “control remotely” above anything else (including: family security, financial savings and home comfort).

Almost 50% of older customers (ages 45+) value financial savings the most. And interestingly enough, this group overwhelmingly described “control remotely” as giving control away. Their skepticism of the cloud and smart technology is clear. Over 50% stated they would not install smart technology all together.

Breaking through this complex lighting market starts with personalizing the message around the benefits that they actually value. It’s also about making your product benefits relatable to their every day lives.

Would it simplify the shopping experience if we…

Sold light bulbs in terms of room and correlating activities? Which light is best for applying makeup? (Women, you hear me.) Which light is the warmest and most soothing for a newborn’s room? Which light is best for your late-night reading lamp? Which light is best in a room where the family watches TV every night?

Promoted the “right” bulb near the “right” products. On the makeup aisle? With the baby essentials? Cross-promoted with brands in these categories?

KSV has more than a decade's experience communicating about energy efficiency lighting programs. Maybe we can help you. Get in touch with Lauren Bell to describe your challenges and we'll work on some solutions.

Last week at the ACEEE Market Transformation conference, the conversation around the changing utility landscape continued. We heard a representative from the Department of Energy state, “If utilities don’t change, and get out of the paradigm of the past, their business will change for them.” And utilities and energy efficient product companies discussed the need and transition to a customer-centric business model.

One of the biggest industry challenges this revolution brings is customer engagement. It’s necessary, yet can’t be mandated. It’s something that has to be done right or will be disregarded.

It’s becoming a widespread industry goal, but the big question remains: how do you get there? How do you get customers to stop thinking of you as a monthly bill and start looking to you as an influential brand? Or better yet, a trusted advisor?

Of course, the answer to this question is a combination of many things - utilizing the right customer data, providing the customer the right information and tools to understand and control their consumption, optimizing customer service, the list goes on.

But one overarching theme and place to start: STOP thinking like an engineer and START thinking like your customer.

As a firm specialized in energy efficiency marketing, our focus is on the customer and their motivations to purchase E.E. products and participate in E.E. programs. What makes them say “yes”?

After recently surveying of 1,345 homeowners on their relationship with energy efficiency, one thing is loud and clear: we need to re-frame the conversation.

More than ever before, people are aware of energy efficiency (both as a feature and an action), but only 18% participated in a utility program last year. While this increase in awareness is important, building the customer’s desire to participate is where the industry is lacking.

To do this, we need to make energy efficiency relatable and tangible. We need to frame the conversation around the things customers prioritize most – home, health, and family being among the top. By tapping into the lifestyles of your customers, customers will see the value for himself or herself and in turn, this will trigger the desire to act.

A major theme from our research: “It’s not about energy efficiency. It’s about improving my home.”

What would happen if you had to remove “energy efficiency” from your communications? What if you replaced it with “home improvements”, “home efficiency” or “home performance”?

Home improvement retailers and networks like HGTV have reinvented the DIY world over the last decade. (In fact, 60% of homeowners stated they actually enjoy taking on DIY home improvements.) How have they done this? They’ve empowered consumers to WANT to take on these projects. They’ve tapped into the real motivators (or barriers) for purchase vs. the savings or even the products.

Look at Lowe’s and Home Depot, they focus on the benefits that actually matter to customers. Maybe it’s the easy install or durability over the actual savings or product itself.

Our newest consumer research uncovered what matters most to customers when it comes to energy efficiency upgrades and purchases. In an effort to move utilities to communicate in a more customer-centric way, utilities need to know what’s actually centric to the customer.

Connecting with the Ever-Connected Customer. Why is this so important?

Because we’re not just talking about the Beats-headphones and Fitbit-wearing, mobile device-centered millennial anymore… According to Accenture, more than two-thirds of consumers plan to buy connected technology for their homes by 2019. (Smart thermostats alone are expected to have a 43% adoption rate in the next five years.*)

KSV’s newest research on the American homeowner and their relationship with energy efficiency tells us that:

85% of homeowners are interested in regularly visualizing their energy use.

71% would change the times they operate their appliances to off-peak periods, if they had smart appliances and could monitor peak energy times.

86% think the world will be better off because of increased energy efficient technology in the next 5-10 years.

It’s obvious that supporting the connected customer is no longer a trend… It’s the future. People either are or will invest in smart technology and in creating a connected environment. People are trending towards living smaller and smarter. They’re excited around being thoughtful and celebrating less consumption through less square footage.

By supporting the connected customer, you are giving them control. In our research, control proved to be an interesting benefit. We were surprised to see the definition, perception and value customers place in “control” vary so much by demographic. (To learn more, reach out to Lauren Bell.)

One thing is clear: when you give customers the tools to live as efficiently and comfortably as they possibly can, the heat is off you and on the customer.

How can you support this “connected” lifestyle? Partner with brands that capture the attention of your audience and with whom they trust. Make it easy for them to participate in this smart revolution. Nudge them. Support them. Advise and incentivize.

While most consumers may not understand the complex and ever-evolving nature of this industry, they are aware that it’s changing. Rapidly. Customers need to know that measures are being taken to update old infrastructure, produce a cleaner product, connect with new technologies and to better serve the changing needs of the marketplace.

Partnering with brands that represent the future of how we’ll live and play is a simple way to engage with customers, increase savings and even satisfaction. A terrific example of this would be the Nest and Reliant work to sell more smart thermostats. It’s fair to say… “But what work wouldn’t be successful with Matthew McConaughy’s beautiful, Texan drawl?” However, with or without him, the strategy is smart. The spots showcase the tangible benefits of living in a smarter, more thoughtful home made possible by both Nest and Reliant.

In an age of consumer discontent with utilities, energy efficiency is one of the only positive touch points utilities have with their customers. So use it. Be bold with it. Make it your brand. Just like you navigating this ever-evolving industry, your customer is navigating new technology – be there for them.

As marketers, we’re constantly challenging ourselves to think differently (and more humanly) about energy efficiency – to remove ourselves from the daily grind of heating and cooling programs, product rebates and financing offers. How can we approach participation from a truly customer-centric perspective? How do we start a movement that inspires action across audiences? How do we get people to care about living an efficient life?

At KSV, we’re constantly hitting the road to learn what makes your customers tick. We talk to homeowners, small business owners and even large C & I decision makers about the barriers, motivators and overall benefits of energy efficiency.

The result? Unexpected insight into the consumer relationship with energy efficiency; insights that tell us we, as an industry, are talking about energy efficiency all wrong.

The good news? There’s a solution. We can get people to act, but we have to re-frame the energy efficiency message as we know it. We need to make this message not about energy, but about what your customer wants and needs.

In 2014, 69% of research* participants stated they found themselves adapting to inefficiencies in their homes and/or businesses rather than seeking solutions. We heard:

“You come into the house and you put a sweater on, and you just kind of leave it at that.” - Homeowner

“You have to educate someone about the inefficient areas so they pay attention to it. They just assume some costs are constant and part of their daily lives. People just get used to it. They think it’s outside of their realm of control.” – CEO, Global Software Company

People are so normalized to everyday inefficiencies in their homes and/or workplace that it is only when these inefficiencies cause a disruption in expectation that they are noticed.

This is a huge barrier – increasing participation/sales in programs and products that customers aren’t aware they even need. If their bills are consistent, that means they’re efficient… Right? How do we disrupt the customer expectation of what is “normal”?

In January, we surveyed 1,245 homeowners across the country to give us an even deeper understanding of the customer attitude and outlook for energy efficiency.

We heard loud and clear that people have a strong and positive outlook for energy efficiency. In fact, 75% expect significant impact from energy efficient products and services in as little as five years (for their home, the U.S. economy and the world). But only 18% reported participating in a utility E.E. program last year. And 64% of homeowners reported NOT making any E.E. improvements last year.

This disconnect tells us a lot, but one thing loud and clear: WE’RE STILL TALKING ABOUT ENERGY EFFICIENCY ALL WRONG.

Energy efficiency lags action intent and motivation. It’s complex, remote (in time and consequence) and intangible. To bridge the gap between awareness and action, we need to re-frame the energy efficiency message around the customer and their priorities.

We can’t ask people to do things and expect them to care. We have to position and communicate the benefits of our products and programs as such a good fit for them that they actually want the solutions you’re offering. Until they want it, they’re not going to invest time and resources into it.

If we can do this, we’ll give energy efficiency intent and we’ll disrupt the “normal.”

Reach out to Lauren Bell for more information on research findings and customer insights.

On top of that, 75% of homeowners expect big impact from energy efficient products and services in as little as five years. (FIVE years!)

YET, only 46% invested in an energy efficiency measure last year, and only 18% participated in a utility-sponsored energy efficiency program.*

Where’s the disconnect? If people “believe”, why won’t they act?

Research supports that while most customers are “aware” of utility programs and product efficiencies, they’re unaware of the personal benefits driving their actual desire to commit. In order to bridge “awareness” and “action,” energy efficiency solutions need to become relatable to the things customers prioritize most: health, home, family, entertainment, and self.*

In other words, we need them to “want it” before we can expect them to act on it.

As interest and awareness increase, it is an especially critical time for utilities to prove their value to customers. Energy efficiency provides the opportunity to build a brand for the future, and to move from a “traditional billing processor” into a “trusted energy advisor.”

Utilities can capture the health, home and family categories relatively easily, but framing them from a traditional energy efficiency standpoint doesn’t create desire. Successful energy efficiency marketing will re-frame energy efficiency by focusing on what truly matters to customers, what they will relate to, and what will get them to act.

A terrific example of a big brand doing this is JetBlue. They’re a “how-to guide” for building a truly customer-centric brand and long-term loyalty. Like energy efficiency, the benefits of flying are in the result – a vacation, spending time with relatives or coming home.

But this airline reinvented the industry when they offered customers the personal benefits they wanted, but didn’t know they could have. If and when fares increase, customers will still fly JetBlue. They want the better experience. They want to support a company who celebrates and prioritizes sustainability, military veterans and people. (Just Tuesday, JetBlue learned of a high school cheerleading team who was going to be stuck in an airport for three days. They sent a van, transferred the team to another airport and got them home that night. True story.)

While JetBlue is known for high quality service at an affordable price, it’s the experience that customers have built a connection with. They provide and sell the benefits that really matter to customers when they travel. (And no surprise, that’s more than just the upfront savings.)

When walking down a JetBlue terminal, passengers are flooded with exciting amenities:

More legroom!

Brand name snacks!

Recycling!

Your own TV! (36 channels!)

No black out dates!

Points that never expire!

Travel with your pets!

And soon to be… Free WIFI and power outlets on every row!

We’re not surprised that JetBlue has won their 10th consecutive, customer satisfaction award with J.D. Power.

When it comes to energy efficiency, why aren’t we talking to customers about the personal benefits they’ll actually connect with? Financial savings is important, but the long-term connection will come from the benefits that impact what people prioritize most: health, home, family, entertainment, and self.

The results of improving your home through energy efficiency are much bigger than financial savings; it’s a more comfortable home at a controlled cost. It’s a more reliable home at a higher value. It’s a safer, healthier home for your family. It’s taking care of your most important asset: home.

The financial savings make it easy for people to commit, but don’t move the needle in getting people to care.

For an industry that’s largely never had to be a brand, transitioning ratepayers into loyal customers is a challenge. But it’s also a chance.

If you’re interested in hearing the full research report, and the customer insights on making energy efficiency matter, get in touch with Lauren Bell.

The 2015 Ecova Outlook Survey reports that 57% of executives, finance and sustainability professionals expect an increase in the time and money spent on energy and sustainability management this year.* Consumers are expecting more action from companies and companies are demonstrating an increased willingness to invest.

How do we, as marketers for energy solutions companies, reach this audience and leverage this important expectation?

KSV conducted qualitative interviews with business owners and executives to find out. Three key themes emerged from these conversations: Personalization, Engagement and Benefits.

A successful value proposition for C&I customers should align with their needs in a language they already speak. Too often we say, “Lower your energy costs” or “Increase your efficiency.” This is not standard conversation, unless perhaps, you’re the facility or operations manager… and these aren’t your decision makers. How do we help these people sell up the management chain?

In our interviews, one CEO stated, “You have to educate someone about the inefficient areas so they pay attention to it. We just assume some costs are constant, outside our realm of control.”

While there is an increased interest in more efficient operations and sustainable infrastructures, the decision to invest still needs to make business sense. (And that means more than just reducing energy costs.) To capture the attention of C-suite executives and top managers, you need to present solutions to their business goals.

Assure these customers that energy efficiency is not about using less or producing less. No one wants to shrink industry. The goal is to operate efficiently, and simply to invest less in waste.

From their perspective, here are some elements of what success looks like:

· Reduced operations and maintenance (O&M) costs

· Reduced risk

· Increased asset value

· Increased equipment reliability

· Increased employee engagement, productivity and safety

· New business opportunities

We need to fit your products and programs into the business goals of this audience. While they may not think they have an “energy” problem, what company doesn’t want to reduce O&M? Especially if by doing so, they’re also able to increase their corporate citizenship and sustainability?

In this emerging market of energy solutions, our clients always want to be seen as a “trusted advisor” to customers. In order to do this, utilities, energy efficiency programs and ESCOs need to stop talking energy, and start talking benefits.

Breathe new life into your C&I programs. Help customers navigate the right energy investments by selling your products and services as solutions to their business – not just their bill.

Get in touch with Lauren Bell to learn more about our interviews with business owners, executives and strategic philosophy on reaching this audience.